Authority: High Court of Himachal Pradesh, Shimla

Order Date: 20 June 2026

Case Overview

  • Parties: Appellants – Sunil Kumar (deceased) through legal representatives, representing the sons and husband of the deceased Vidya Devi; Respondents – Himachal Road Transport Corporation (HRTC) and the driver of the bus (respondent No.2).
  • Nature of Proceeding: Appeal under Section 173 of the Motor Vehicles Act against the award dated 23 July 2016 passed by the Motor Accident Claims Tribunal‑IV, Shimla (MAC Petition RBT No.155‑S/2 of 2014).
  • Accident Details: Occurred on 26 May 2014 at ~5:00 PM near Balgarh Kainchi, Tehsil Theog. The offending vehicle was HRTC Bus No. HP‑03B‑6121 driven by respondent No.2, which lost control and rolled into a deep gorge, causing the death of Vidya Devi, a 57‑year‑old homemaker.
  • Claims: Claimants sought compensation of Rs 20,00,000 plus 18% interest, citing Vidya Devi’s monthly income of Rs 30,000 and additional earnings of Rs 1,200‑1,300 per day from milk sales and agricultural work.
  • Respondents’ Stand: Both HRTC (respondent No.1) and the driver (respondent No.2) contested the petition, denying negligence and arguing lack of maintainability.
  • Tribunal Award: The Tribunal awarded Rs 5,03,800 with interest at 9% per annum, holding respondents jointly and severally liable, but fastening liability on HRTC.
  • Appellants’ Contentions: Argued that the Tribunal ignored evidence of Vidya Devi’s actual earnings, miscalculated her contribution to the family (recorded as Rs 5,400 per month), and sought enhancement of the award.
  • Judicial Observations: The Court noted that the purpose of the Motor Vehicles Act is to provide ‘just compensation’ and that the factual matrix of the accident was admitted.
  • Supreme Court Guidance Applied: Citing Shishu Pal v. Surjeet (2026 INSC 634), the Court adopted a monthly loss‑of‑domestic‑care figure of Rs 30,000, with a 10% uplift for future prospects, resulting in a monthly contribution of Rs 33,000. After deducting one‑third for personal expenses, the net monthly loss is Rs 22,000.
  • Computation: Using the Tribunal’s multiplier of 9, loss of domestic care = Rs 22,000 × 12 × 9 = Rs 23,76,000.
  • Other Heads: Loss of estate = Rs 19,500 (Rs 15,000 + Rs 4,500); Funeral expenses = Rs 19,500 (same breakdown); Loss of consortium = Rs 40,000 per dependant with 10% triennial increase, amounting to Rs 1,56,000 (Rs 52,000 × 3).
  • Total Compensation: Rs 23,76,000 + Rs 19,500 + Rs 19,500 + Rs 1,56,000 = Rs 25,71,000.
  • Interest Adjustment: Interest reduced from 9% to 7.5% per annum, aligning with prevailing rates of nationalised banks.
  • Additional Orders: Memo of costs to be prepared; any pending applications disposed; record to be sent back.

Final Outcome

  • The appeal is allowed; the compensation award is enhanced from Rs 5,03,800 to Rs 25,71,000 with interest at 7.5% per annum. All ancillary applications are dismissed and costs ordered.

Topics: Compensation Award, Motor Accident Claim, Judicial Determination